Orange County NC Website
Browse       Search
23 <br /> II. Benefits of C-PACE <br /> For Local Governments: C-PACE is an economic development tool. By making it more <br /> affordable for building owners to make major improvements to their buildings, local building stock <br /> is enhanced, which drives job creation. Energy and resiliency upgrades retain and attract new <br /> businesses by lowering utility costs, and in turn these upgrades generate higher property tax <br /> payments for local governments. C-PACE can also support local governments in their efforts to <br /> achieve energy and emissions reduction goals. The C-PACE program is structured to be cost- <br /> neutral for local governments and requires little-to-no administrative resources. <br /> For Property Owners and Developers: One of the biggest barriers to converting potential <br /> projects to completed projects for efficiency and resiliency upgrades are the up-front costs. C- <br /> PACE financing typically requires little up-front investment, and qualifying improvements have a <br /> direct impact on property value. Energy and water efficiency measures also lower operating costs. <br /> C-PACE financing has the following additional benefits: <br /> • Up to 100%, long-term financing. Many owners lack the capital to complete efficiency and <br /> resiliency improvements. All direct and indirect hard and soft costs incidental to the <br /> qualifying improvements can be included in C-PACE financing applications and are <br /> described on p.8. <br /> • Transferrable upon sale. Some owners may need to sell their property before the C-PACE <br /> financing is fully repaid. The C-PACE lien and assessment are attached to the property <br /> and transfers to the new owner unless the prior owner pays off the assessment. <br /> • Increased cash flow. C-PACE financing may be repaid over the useful life of the <br /> improvements, generally between 20-30 years. This is longer than other traditional <br /> commercial loans and therefore reduces the installment payments, having a positive effect <br /> on cash flow. <br /> For Existing Mortgage Holders: C-PACE improvements can enhance property value and <br /> typically improve a building's longevity, thereby reducing the risk of property value decline over <br /> time. In addition, by reducing utility expenses, C-PACE financing increases property owners' net <br /> operating income, improving the stability of their business. C-PACE assessments are non- <br /> accelerating, meaning only current or past due annual payments can be collected each year while <br /> future payments stay with the property. As such, existing lienholders see their collateral improved <br /> without substantial increase in credit risk and with minimal impact on lien priority. C-PACE <br /> financing is not permitted without the consent of all existing mortgage holders and, under certain <br /> circumstances, the holders of certain other obligations encumbering commercial property. <br /> For Energy Auditors, Architects, Building Engineers, and Contractors: When property <br /> owners can access financing for longer terms than are typically available, substantial efficiency <br /> and resiliency improvements become more affordable. Energy auditors, architects, engineers, <br /> and contractors can suggest C-PACE financing as a way for their clients to implement needed <br /> energy or resiliency upgrades that might otherwise be unaffordable. Since the demand for building <br /> efficiency and resiliency improvements will increase in a C-PACE-enabled jurisdiction, C-PACE <br /> is a powerful business growth catalyst for building professionals like energy auditors and <br /> contractors. <br /> 3 <br />